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Posted by Rincon Controller and Tax Services

So Much To Do - January

Wow, somehow we are already looking at the middle of January.  For businesses, this is a busy time.  Here are some of the things to be aware of, especially in California.

  • Minimum wage in California increased to $10/hr as of 1/1/16.  This means that anyone with payroll will need to make sure increases have been made appropriately.  

 

  • The Standard Mileage Rates for 2016 has been lowered, you will need to update your mileage expense worksheets and notifiy staff to the new amount, which is 54 cents per business mile driven.

 

  • It is a good idea to remind employees to update their W-4's for any tax and retirement withholdings, especially if they had life changes in 2015 or first part of 2016.  

 

  • W-2's need to be sent out, so be sure to have reviewed them first for correct social security numbers and addresses before the deadlines.

 

  • 1099's are due to be sent out by Feb 1 to the receipients (different deadline for submission to the IRS), but really should be done sooner.

 

  • CA Q4 2015 Sales Tax is due at the end of the month.  Also, the BOE has sent out letters in the last few months to businesses whose reporting and payment periods are changing, many of those changes are taking place this month as well, so if you recieved one, be sure to update your calendar or you could be facing big penalties.

 

  • Update your paid time off worksheets if your payroll is not tracking it, remember in California, there is the required minimum paid sick time now and you are required to report it to your employees.  

 


Remember, it is also a good time to pull your tax data together in a file, hard copies or pdf's, so that it is ready to go to your tax preparer as early as possible.  

  • Tax returns are being accepted by the IRS for 2015 filing year, on January 19th.

 



PS - Please remember that these deadlines impact your bookkeepers, any other accounting staff, financial advisors, etc so it helps to be a little bit nicer to them...

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